The effects of increases in cigarette prices on cigarette consumption among smokers after the Master Settlement Agreement
Zhen Ma ()
Additional contact information
Zhen Ma: Misericordia University
Review of Economics of the Household, 2017, vol. 15, issue 4, 1177-1190
Abstract This paper examines the impact of the large increases in cigarette prices after the Master Settlement Agreement on cigarette consumption among smokers by estimating a dynamic panel data model. I use system generalized method of moments estimator with fixed effects to address the unobserved heterogeneity and the initial conditions problem. I find that older smokers (aged 51 and older) are virtually unresponsive to price changes, and younger smokers (aged 50 and younger) are more price sensitive; women smokers might be more price responsive; and the overall estimated price elasticity for the full sample of smokers is −0.26. In addition, smoke-free air laws do not show significant effects.
Keywords: Cigarettes; Smoking; Price elasticity; Dynamic panel model; GMM (search for similar items in EconPapers)
JEL-codes: D12 I12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11150-015-9290-0 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:reveho:v:15:y:2017:i:4:d:10.1007_s11150-015-9290-0
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11150/PS2
Access Statistics for this article
Review of Economics of the Household is currently edited by Shoshana Grossbard
More articles in Review of Economics of the Household from Springer
Series data maintained by Sonal Shukla ().